Some commonly used terms explained

With legislative changes and the complexity of investments and super, it’s hard to keep up with all the terms used.

Here’s a useful glossary of some commonly used terms:

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Concessional contributions

Previously known as deductible contributions, these include superannuation contributions made from pre-tax income and are concessionally taxed. Employer superannuation guarantee contributions, salary sacrifice contributions and contributions made by the selfemployed for which they can claim a tax deduction are all classed as concessional contributions.

Dependant

Generally the member’s spouse (including de facto) or child, or any other person who is financially dependent or in an interdependency relationship with the member.

Growth assets

Assets such as shares and property which are expected to increase in value over the long term. Imputation (franking) credits: taxation credits which are passed on to shareholders (including superannuation funds) from companies which have already paid tax on profits before dividends are paid.

Imputation (franking) credits

Taxation credits which are passed on to shareholders (including superannuation funds) from companies which have already paid tax on profits before dividends are paid.

Investment risk

The variability of returns. Generally the higher the potential return, the greater the risk of loss.

Preserved benefits

Superannuation benefits that cannot be accessed until a specified condition of release has been met. It is usually mandatory that benefits be preserved until the individual has retired and is aged between age 56 and 60 (depending on date of birth) or has reached age 65.

Salary sacrifice

An amount of pre-tax salary that an employee decides to contribute to super instead of taking as cash salary. This is in addition to the compulsory super guarantee contributions that are made by the employer on behalf of an employee.

Super co-contribution

An Australian Government initiative to help individuals save for their retirement. If you are eligible and make personal contributions to your super, the Government will make a co-contribution on your behalf.

Financial advice makes a difference Border Bank have chosen Bridges* as our preferred Financial Planners. So, if you need help deciphering the jargon, and making the most of your financial situation, call us on 132 267 or visit www.borderbank.com.au and make an appointment with a Bridges financial planner. The initial consultation is complimentary and obligation-free.

Take the Next Step!

If you’re ready to learn more and plan for your financial future, take the next step make an appointment with a Bridges financial planner

We have an established alliance with Bridges financial services, to provide our customers with financial advice. Bridges has been helping Australians for over 30 years and is one of Australia’s largest, national, financial planning and stockbroking organisations. Bridges has a network of more than 170 financial planners across Australia servicing more than 50,000 clients.

A Bridges financial planner will develop a plan specifically for you – one that’s tailored to your needs and circumstances, to help you achieve your goals.

*Bridges Financial Services Pty Limited (Bridges) ABN 60 003 474 977. ASX Participant. AFSL 240837. Part of the IOOF group.

This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances and consult a financial planner or a registered tax agent. Examples are illustrative only. In referring customers to Bridges, Border Bank does not accept responsibility for any acts, omissions or advice provided by Bridges and its Authorised Representatives.